A Case Study on Luntiang Republika Ecofarms in Alfonso, Cavite

Date

6-2023

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jeanette Angeline B. Madamba

Committee Member

Gemma U. Reyes, Glenn N. Baticados, Juan Paulino S. Trespalacio Junior, Mar B. Cruz

Abstract

The agritourism industry is an emergent market that has opened new tourism doors, offering hands-on experience in farm activities, a rural lifestyle, and a green, peaceful ambiance. The Luntiang Republika Ecofarms, the subject of this research, is an integrated, diversified organic farm located in Barangay Taywanak Ilaya 1, Alfonso, Cavite, with 1.8 hectares and bounded by the Catmon River, which runs alongside the farm's vicinity. It mainly operates in farm tourism, crops and livestocks production, agricultural-based training, and value-added processes, aiming to promote a sustainable way of farming in which the current development does not compromise the ability of future generations to meet their needs. The farm is owned and managed by Mr. Eduardo Cleofe and his family, together with their four organizational officers, four-stay-in employees, farmers and on-call employees.

The study entitled "A Case Study on Luntiang Republika Ecofarms in Alfonso, Cavite" was conducted to assess the business performance of Luntiang Republika Ecofams in Alfonso, Cavite. The specific objectives were to: (a) present the historical background and profile of Luntiang Republika Ecofarms; (b) discuss the current business environment of Luntiang Republika Ecofarms; (c) evaluate the four business functions, namely marketing, production, personnel, and finance, of Luntiang Republika Ecofarms; (d) identify the key business issues of Luntiang Republika Ecofarms; (e) evaluate the alternative solutions to the identified business issues encountered; and (f) design an implementation plan for the recommended solution.

The study primarily used a descriptive research design, specifically the case study approach. The data used were primary and secondary data to gather the necessary information to assess the business performance of Luntiang Republika Ecofarms. The primary data is gathered through personal and remotely held interviews with the organizational officers and observations during the 30 hours of apprenticeship training, while the secondary data were the files and documents provided by the owner, including access to at least three years of financial statements, the farm's profile and historical background, and any internal and confidential information to use solely for research purposes. Other data were collected from the research materials and publications, including the journals, local and international government units, and other institutions' publications, consolidated reports and articles.

The study used external, internal, and integrated assessments to evaluate the primary and secondary data collected from Luntiang Republika Ecofarms and other source data and information. The external evaluation involved the discussion of the macroenvironment and microenvironment of Luntiang Republika Ecofarms, which used the PESTLE analysis and Michael Porter's Framework of Analysis, respectively. Meanwhile, the internal assessments which are done descriptively utilized the four business functions (marketing, production, personnel, and finance) and the historical background and profile of the Luntiang Republika Ecofarms to evaluate the status and performance of the farm. Lastly, the integrated assessments utilized the results of the internal and external assessments, using the SWOT Analysis and Problem Tree Analysis.

Other data analytical tools used were a competitor analysis framework, horizontal analysis, financial ration analysis, Decision Grid, and Zmijewski's Score Model, which revealed that the Luntiang Republika Ecofarms' primary concern is the farm's organizational survival in the next two years, considering the heightened risk of bankruptcy. Hence, the ability of the farm to persevere in these conditions will significantly affect it long-term success and potential.

The problem flowchart indicated that the root cause of the core problem includes the lack of revenue streams and inefficient operations. The lack of revenue streams may be broken into three causal factors: (a) ineffective market and promotional strategies; (b) failure to adapt to changing market conditions; (c) lack of financial resources. These causal factors have led to difficulties attracting and retaining customers, decreased sales and revenues, missed opportunities for growth and development, inability to meet financial obligations, and limited access to credit. Meanwhile, the inefficient operations of the farm can be categorized into four areas of concern: (a) inadequate technology or equipment; (b) inefficient use of tome and resources; (c) lack of personnel; and (d) poor management practices. The areas concerns have led to increasing costs in the operations, lower quality of products and services, a decline in employee morale and productivity, and lack of balance on short- and long-term plans.

On the other hand, the integrated analysis, notably the SWOT Analysis, identified the internal factors (strengths and weaknesses) and external factors (opportunities and threats) used to determine the SO, ST, WO, and WT Strategies. These strategies included strategic partnership, diversification and cost reduction. Another alternative is operational efficiency, which will be included in the implementation plan of the best possible alternative.

The Decision Grid of the alternatives showed that the best alternative to immediately address the core problem of the Luntiang Republika Ecofarms is implementing a cost reduction program. If this alternative does not immediately produce results in terms of streamlining operations, then the company can pursue diversification of market channels, products, or services, and customer base as its contingency plan to shore up revenue streams, mitigate potential negative consequences, and ensure that Luntiang Republika Ecofarms can effectively respond to disruptions.

Language

English

LC Subject

Organic farming--Case studies

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2023 M17 M67

Notes

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Document Type

Thesis

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